TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 8, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of Pump and Blower House and Coarse Screen Building at the Stickney Water Reclamation Plant, to IHC Construction Companies, LLC, in an amount of $51,445.97, from an amount of $30,356,356.51 to an amount not to exceed $30,407,802.48, Accounts 101-50000-612680, 401-50000-645680, and 645780, Purchase Order 5000961
Body
Dear Sir:
On December 18, 2008, the Board of Commissioners authorized the Director of Procurement and Materials Management to award Contract 01-198-AD Demolition of Sludge Disposal Building and Rehabilitation of Pump and Blower House and Coarse Screen Building at the Stickney Water Reclamation Plant (WRP), to IHC Construction Companies, LLC, in an amount not to exceed $28,490,000.00. The scheduled contract completion date is February 1, 2011.
As of June18, 2010, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in the amount of $1,866,356.51 from the original amount awarded of $28,490,000.00. The current contract value is $30,356,356.51. The prior approved change orders reflect a 6.55% increase to the original contract value.
The contract involves the demolition of the Sludge Disposal Building at Stickney WRP. During demolition, the contractor discovered that the storage tank and the dust precipitator in the pump and blower house building at elevation +92.5 contained asbestos insulation material hidden behind the steel plates of the equipment walls. Since this area was not visible during the design phase, the asbestos abatement for this equipment was not anticipated; therefore, it was not included in the original contract. The contractor submitted a cost proposal (CCO-29) in the amount of $51,445.97, after he completed the extra work at his own risk, as determined in his best interest to execute the overall contract. The engineer reviewed the cost proposal, found it reasonable, and stated via correspondence 504, that the Engineering Department would recommend its approval.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances that were not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase Contract 01-198-AD in an amount of $51,445.97 (0.17% of the current contract value) from an amount of $30,356,356.51 to an amount not to exceed $30,407,802.48.
Funds are available in Accounts 101-50000-612680, 401-50000-645680, and 645780.
Requested, Kenneth A. Kits, Director of Engineering, TEK:JKK
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 8, 2010
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